Finding Text
Federal Assistance Listing #14.134 Mortgage Insurance - Rental Housing Federal Assistance Listing #14.195 Section 8 Housing Assistance Payments
Criteria
Tenant lease files are required to be maintained and tenant eligibility determined in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs.
Condition
During the procedures applied to a sample of 2 new tenant lease files, we noted 1 instance where the tenant tested did not have the tenant and subsidy rent portions calculated correctly.
Cause
Management's policies with respect to the determination of tenant eligibility and the maintenance of tenant lease files in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs were not consistently followed.
Effect or Potential Effect
The procedures for determining tenant eligibility and maintaining tenant lease files were not consistently applied in accordance with HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs. This could result in units being rented to ineligible tenants or errors in the rent subsidies paid by HUD.
Questioned Costs
$261
Context
A sample of 2 new tenant lease files. We noted 1 instance where the tenant tested did not have the tenant and subsidy rent portions calculated correctly.
Identification as a Repeat Finding
This finding is a repeat finding (See prior year finding number: 2023-001).
Recommendation
Management should establish procedures and monitor compliance with those procedures to insure that tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs.
Auditor Noncompliance Code: R - Section 8 program administration
Finding Resolution Status: Resolved
Views of Responsible Officials
Management agrees with the finding. Documentation was submitted showing that the 50059 was corrected to include accurate information. Management will monitor compliance with its established procedures to ensure tenant eligibility is correctly determined and that the tenant lease files are properly maintained in accordance with the requirements of HUD Handbook 4350.3, Occupancy Requirements of Subsidized Multifamily Housing Programs.